Investors Lose Millions During Market Downturn with Controversial Financial Product, XIV

Posted on March 21st, 2018 at 2:10 PM
Investors Lose Millions During Market Downturn with Controversial Financial Product, XIV

From the Desk of Jim Eccleston at Eccleston Law LLC:

In early February, as the Dow Jones industrial average dropped nearly 1,600 points, many analysts pointed to Credit Suisse’s VelocityShares Daily Inverse VIX Short-Term exchanged-traded note (ETN), or XIV for short, as a major factor that caused staggering market losses.

Moreover, analyst argued that the reason XIV played such a significant role in causing staggering market losses had to do with the fact that the product shorts volatility by betting on calm market conditions.

Furthermore, during the market downturn, the price of XIV dropped from $109 a share, to as low as $10.10 a share, causing significant losses for investors who owned the product. 

In response, Credit Suisse announced that the XIV shares would stop trading and that the fund would close.

Eccleston Law continues to investigate and is interested in speaking with any retail investors who bought through Credit Suisse.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.


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As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

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